Posts Tagged ‘Hunting’

As always my statistics come from Intermountain MLS. Numbers look good here again however I think you will be surprised. So far for the year home prices are up only slightly more than 7%. Number of homes sold is up 8% compared to last year. Existing home sales are up 7.5% and new construction is up 43%. However prices are key. Residential resale prices are up 6.35% and new construction is flat at 1.62% up. People are buying new homes because they can’t find what they want, prices are flat in new construction because they have enough inventory. Basic inventory supply and demand rules are in effect.

So Rich, now what happens? We keep sailing along. Homes are still selling, prices are holding, in some price markets they are a dropping. Interest rates are stabile. I don’t think we will see any changes until the beginning of the new year.

But Rich, the election is coming. Correct historically speaking housing prices tend to drop after an election regardless of who wins. Prices tend to drop because people are uncertain of how things will go with a major change. This uncertainty freezes people and creates a wait and see attitude especially in major purchases. However we have quite an usual market coming out of the recession and still a shortage of inventory. I believe we will see a slight increase next year. Of course wait nine months and we will see. If you would like to see how your neighborhood did go to: